RSM Family and Wealth

We developed our complex wealth planning service for the family-owned business, business groups, and their private person owners and their heirs. Our Private Client Services expert team can offer comprehensive and future-proof solutions to any questions arising in the context of family and business.

Our legal, tax and transaction experts have decades of experience in the development of domestic and international company structures and in the area of tax, finance, legal and due diligence tasks relating to sales and acquisitions of companies. We also offer a comprehensive advisory service to our partners in the fields of real estate wealth, the wealth planning and inheritance of private persons, family wealth and the division of marital joint property.

We work with the owners of family businesses in Hungary and worldwide

RSM Hungary is one of the founding members of the Association of Responsible Family Businesses Network in Hungary. FBN-H members belong to the most significant Hungarian family-owned businesses. RSM Hungary is a member of the global advisory network of RSM, a powerful network of audit, tax and consulting experts with offices in 120 countries. Our employees work with the owners and managers of family businesses and wealthy individuals in Hungary and worldwide.

Our team of tax, finance, legal, accounting, and transaction experts has the knowledge and personal experience necessary to efficiently plan the system and management of your investments and assets, the transfer, inheritance, and protection of your wealth or, as the case may be, the sale or outsourcing of your family assets.

Our services for family businesses and their owners:

Wealth protection of family businesses

Restructuring of family business, holding planning

The restructuring of a family-owned business group requires strategic decisions for which preliminary analysis and preparation are essential. There are many aspects to the purpose of restructuring a family-owned business but a general consideration is for the group to reach the highest possible market value with the most favourable tax conditions as a result, with a minimization of operation-related risks and protection of the generated wealth.

Our experts offer comprehensive and up-to-date accounting, finance, tax and legal knowledge to our clients so that they can achieve their strategic goals.

Fiduciary trusts, family foundation, trust management foundation structures, private equity funds

In the planning of the future of one's wealth, not only the last will but, in the case of particularly large family wealth, the various wealth management schemes may also present solutions. If we are talking about operating assets, companies, the concept of fiduciary trust can ensure the continuous operation of the asset independently from potential inheritance burdens or heirs' disputes with the settlor having a flexible effect on the structure of the trusteeship even in the long run. Long-term comprehensive and complex planning of even the most complicated family assets located in multiple countries can be solved by setting up a holding trust. In certain cases, investment of the family wealth is also possible through private equity funds.

Wealth management solutions offer a wide range of possibilities, which can be adjusted to the owners' special needs offering customized, favourable conditions for the protection of the family's wealth. Our experts do not only offer comprehensive advisory assistance in the planning but also in the implementation and the operation in the practice of optimal wealth management structures.

More information

Tax and legal advice on setting up a holding structure

The growth of assets and the size of the firm, the differentiation of business lines and, last but not least, the need for generational change, may all call for restructuring. A group of companies directly owned by private individuals is not the most favourable structure for expansion and growth either for the security of assets or from a tax point of view.

However, in addition to asset protection and tax benefits, a well-designed holding structure offers a number of advantages, such as the simplification of corporate governance processes and the restructuring of the group in a way that prepares it for the acquisition or sale of a business line and for the development of employee incentive schemes.

Matrimonial property

We find that clarification of financial matters, i.e. regulation of matrimonial joint and separate property, the conclusion of a prenuptial (or life partnership) agreement is fundamental to preserve family wealth, but often also to preserve a marriage. Our employees can offer wide assistance in this regard both before the conclusion of and during the marriage.

Prenuptial agreements can protect the joint property also if the business activity of either of the partners poses a creditor risk. In the case of divorce, we support our clients during the property division trial through which lengthy litigation can be avoided that is painful for both parties as well as the family. If no property division agreement is reached, we also take care of our client's legal representation.

Family business asset planning, generation change

Wealth and estate planning, family constitution

We approach wealth planning as the most important long-term factor concerning the owners of successful businesses and their heirs. It takes more than knowledge of civil law or tax rules as, in the case of passing on and protecting wealth, the owner's decisions may not necessarily follow economic rationale.

In the case of family-owned businesses, the first step is often a review and summing up of the concepts and goals of individual family members and joint elaboration of the long-term plans of the enterprise. In this process, not only professional and business questions matter but also a thorough knowledge of the statutory environment, taxation, family law and matrimonial property law but expert mediation and conflict management are also important. As a result, the family constitution can be developed and laid down in writing, which represents a consensus on the company's and the family's values and vision.

Company sale and transaction consulting and services

Under our company sale consulting process, we can support our partners in every phase of the process. In the preparation phase, we provide comprehensive tax, law and finance structuring, then, after preliminary evaluation of the company, we identify potential investors and see the entire transaction process through from the point of requesting indicative offers through due diligence until the phase of the transaction contract (singing and closing).

In the case of a family-owned business, a company sale or acquisition is almost always a sort of evaluation. For the buyer, it typically represents growth and on the seller's side it may even be the measurement of the success of a family life's work. The basis of complex company sale and acquisition transactions is thorough prior due diligence and the key to success is a contract and security system covering every detail.

In the representation of our clients, we plan the financial, legal and tax tasks arising in relation to individual elements of the transactions, participate in business reconciliations and prepare or advise on the relating contracts.

Company acquisitions, due diligence

We provide a comprehensive service in relation to the acquisition of companies. This typically includes the mapping and approaching of target companies, the making of indicative proposals, and after receiving positive feedback from the seller, the due diligence of the target company (or companies) from a tax, legal and financial perspective, and identification of the risk factors relating to individual areas (Due Diligence).

During and (if requested) after a company due diligence process, we can also offer solution options as an added value. We also cooperate in risk assessment during which we develop a customized strategy in cooperation with the client.

Company, quota and asset valuation

The advisors and analysts of our company valuation unit can provide support during the valuation of companies, quotas as well as trademarks, intangible assets or business lines on both the seller's or the buyer's side and, in the case of company transformations, they can also support cash flow modelling and business plan preparation.

Corporate finance consulting

The advisors and analysts of our company financing unit provide support in the coordination and administration of a capital increase process and in the management of the processes of the tasks relating to the development of the form of fundraising and transaction financing.

Family wealth planning in the case of passive asset

Preparation of a will

The last will is the fundamental document of inheritance but it may also form part of a more complex wealth management structure. The formal requirements of the will are specified but its content is up to the testator in terms of, for example, a review of the benefits provided by the testator during his or her lifetime or clarification of the legal status of individual heirs.

To avoid any dispute, proper registration of the will is also part of the process in which our employees can assist both personally or digitally.

Development of special inheritance wealth planning instruments and structures

Beyond the last will, the planning of the future of a family's wealth may also be aided by various asset management schemes. A review of wealth management options is particularly important in the case of substantial wealth, multiple heirs in different careers, or perhaps in the absence of a legal heir.

Fiduciary trust and family foundations have the characteristic that they also provide a framework for asset management after the death of the owner ensuring that his or her intentions are achieved in the long run, a breakdown or living up of the estate are avoided and passing on of the asset is regulated throughout generations.

Determining the place of taxation, tax residence

In respect of incomes of private persons from abroad, we must continuously monitor the provisions of international tax laws and the double tax treaties in place between Hungary and the country of the investment as well as the personal and economic interests of the individual. All these have to be considered when determining the tax residence of the private person and which country has the right to tax him or her in respect of the income in question.

If you are planning a new investment or if major life changes are coming your way (e.g. you are moving abroad, taking a senior position or acquiring participation in a foreign company),you must consider the tax consequences of these as well. With comprehensive legal and tax experience, our experts support you in the assessment of your options and making the best decision.

The inheritance regulation of wealth management systems can only be laid down in a legal form with knowledge of the owner's vision in which our experts can offer you support.

Tax and legal planning of investments

The income from private wealth placed with a domestic or foreign investment service provider or bank may have a substantial tax impact. The Hungarian and international tax consequences of each option should be clarified already before making the investment and the system of terms of the investment should be planned consciously calculating with the relating tax effects also. The comprehensive accounting-tax-legal knowledge of our experts helps clients understand the special regulation system of money and capital markets so that they can increase their wealth in the most favourable form.

Our experience shows that even in the case of existing investments there it is possible that the income is later revealed that the tax or contribution base was not taxed correctly based on the aggregate statement of the foreign bank or investment service provider. Provisions of the relevant double tax treaty may not have been applied correctly on the dividend or interest payments received from abroad. The automatic exchange of information between countries also extends to this data and incorrect taxation may carry a substantial tax risk in respect of the past depending on the size of the investment or, as the case may be, it may generate a substantial amount of tax that the client may reclaim. The experts of RSM will be pleased to assist you in the assessment of Hungarian tax and contribution risks, the calculation of taxes to be reclaimed and in the preparation of the relating self-revisions.

Residency consulting

We provide efficient support to non-Hungarian citizen individuals and their family members in the obtaining (regaining) of Hungarian citizenship (naturalization) and during their obtaining of permanent residency in Hungary, be it the entry of persons not having the freedom of movement and residence or a say for work or other purposes. We also cooperate in the legal representation of foreign private persons in the purchase or leasing of property, agricultural land, high-value movables or vehicles or in the enforcement of their interests relating to the purchase of Hungarian government bonds to obtain Hungarian permanent residency.

We provide comprehensive administrative support in relation to obtaining permanent residency: we are at your service in social security and private banking administration, registration in the government electronic identification system ("ügyfélkapu") and electronic signatures.

Do you have any question?

Don't hesitate to contact us!

Gábor Fajcsák

Partner, Head of Tax services

Emailfajcsak@rsm.hu

Bálint Szűcs

Partner, Tax Expert, Attorney-at-law

Emailbalint.szucs@rsmlegal.hu

Levente Almási

Partner
Head of M&A, Valuation and Corporate Finance

Emailalmasi@rsm.hu

Phone+36 1 886 3700, +36 1 886 3701

Request a Quote!

Offer request

Tax and legal advice on setting up a holding structure

In addition to asset protection and tax benefits, the holding structure can also be used to simplify corporate governance processes and to facilitate the long-term controlled management of family assets.

Fiduciary trust can be an effective solution for securing family assets, managing generational change, regulating inheritance and matrimonial property matters, and for planning the future operation and ownership of assets.